Blog
Failure to control a runaway engine
18th May 2009
Stephen King is on fine form in today’s Independent with a scathing piece on the failures of macro economic policy-making in the UK - superb for a very able A2 student wanting to soak up loads of evaluation arguments ahead of their macro paper!
“There are important lessons to be learnt from the crisis itself and from the events which, over a number of years, led to the crisis…..The first lesson, I think, is to accept that inflation targeting is flawed….The second lesson is to recognise that economic instability can occur even with inflation under control…..The third lesson is not to be wedded to one particular economic outlook. It’s easy enough for policymakers to hide behind the fiction of future economic certainty but that is no more than an illusion…...Uncertainty doesn’t just apply to monetary policy. Fiscal plans are too often destroyed by unexpected economic events.”
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Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.